WASHINGTON, USA – China ’s coffee consumption is soaring, rising to 6.3 million bags this year, making the dragon country the world’s sixth largest consumer in the world. This is according to the bi-annual report on coffee markets and trade published by the US Department of Agriculture (USDA), endorsed by USDA’s World Agricultural Outlook Board. According to the report, China’s consumption has grown by almost 150% in the last 10 years, from just over 2 million bags in the early 2010s to over 6 million bags today.
But China is also the world’s 13th largest producer, with an estimated harvest of 1.8 million bags in 2024/25.
China grows almost exclusively Arabica coffee in the prefectures of Baoshan, Dehong, Pu’er, and Lincang in the Yunnan Province where the altitude ranges between 1,000 and 2,000 meters above sea level.
Output is forecast at 1.9 million bags in 2024/25. While Catimor is the most common variety grown due to its higher resistance to diseases such as leaf rust, it sometimes produces an inferior flavor.
In response to demand for higher quality coffee, growers have begun planting other Arabica varieties such as Bourbon and Typica which offer better flavor and more favorably compete with imports.
In the last decade, China’s total coffee imports nearly tripled to 5.5 million bags and are forecast to reach 5.6 million in 2024/25. This explosive growth was driven by green coffee jumping from just 900,000 bags in 2014/15 to a forecast 3.6 million.
Vietnam and Indonesia were initially top suppliers but have since been overtaken by Brazil and Colombia. Import demand for soluble coffee has remained relatively flat during this period and is forecast at 1.8 million bags in 2024/25, with top suppliers including Vietnam and Malaysia.
China typically imports less than 400,000 bags of roasted coffee, primarily from the European Union and United States.
While tea remains China’s primary beverage, coffee consumption is becoming more popular, especially with younger professionals in urban areas who increasingly purchase coffee away from home. Retailers are concentrated in Beijing, Shanghai, Guangzhou, and Shenzhen but have been on the rise in lesser populated cities such as Chengdu, Hangzhou, Suzhou, and Chongqing.
These markets were initially dominated by international companies that arrived after trade liberalization in the early 2000s, but domestic retail chains have expanded in recent years.
This trend has been facilitated by companies offering on-line purchase for either in-store pickup or delivery, which has raised volumes and lowered costs.
This further stimulated consumption as coffee became more affordable. As the market grows, consumers are transitioning from imported soluble coffee to locally roasted coffee identified by origin (domestic or imported).
